Building
and Other Construction Works (BOCW) COMPLIANCE
The BOCW Cess is payable to the
Government (BOCW Welfare Commissioner of State).
Cess is payable at 1% on cost
of construction which includes all expenditure incurred by an employer in
connection with the building or other construction work excluding;
(i)
cost of land and
(ii)
any compensation paid or payable to a
worker or his kin under the Employees Compensation Act 1923.
Cess is non refundable.
Some relevant laws in
this regard are as follows;
BOCW
ACT, 1996
Section 7 (4)
Where, after the registration
of an establishment under this section, any change occurs in the ownership or
management or other prescribed particulars in respect of such establishment,
the particulars regarding such change shall be intimated by the employer to the
registering officer within thirty days of such change in such form as may be
prescribed.
Section 15
Every employer shall maintain a
register in such form as may be prescribed showing the details of the
employment of beneficiaries employed in the building or other construction work
undertaken by him and the same may be inspected without any prior notice by the
Secretary of the Board or any other officer duly authorised by the Board in
this behalf.
Section 16
(1) A building worker who has been registered as a
beneficiary under this Act shall, until he attains the age of sixty years,
contribute to the Fund at such rate per mensem, as may be specified by the
State Government, by notification in the Official Gazette and different rates
of contribution may be specified for different classes of building workers :
Provided that the Board may, if specified that a beneficiary
is unable to pay his contribution due to any financial hardship, waive the
payment of contribution for a period not exceeding three months at a time.
(2) A beneficiary may authorise his employer to deduct his
contribution from his monthly wages and to remit the same, within fifteen days
from such deduction, to the Board.
Section 30
(1) Every employer shall maintain such registers and records
given such particulars of building workers employed by him, the work performed
by them, a day of rest in every period of seven days which shall be allowed to
them, the wages paid to them, the receipts given by them and such other
particulars in such form as may be prescribed.
(2) Every employer shall keep exhibited, in such manner as
may be prescribed, in the place where such workers may be employed, notice in
the prescribed form containing the prescribed particulars.
(3) The appropriate Government may, by rules, provide for the
issue of wage books or wage slips to building workers employed in an
establishment and prescribed the manner in which entries shall be made by
authenticated in such wage books or wage slips by the employer or his agent.
Building
and Other Construction Workers' Welfare Cess Act, 1996
3. Levy and collection of Cess.- (1)
There Shall be levied and collected a cess for the purposes of the Building and
Other Construction Workers (Regulation of Employment and Conditions of Service)
Act, 1996, at such rate not exceeding two percent- but not less than one per
cent. of the cost of construction incurred by an employer, as the Central
Government may, by notification in the Official Gazette, from time to time
specify.
4. Furnishing of returns.- (1)
Every employer shall furnish such return to such officer or authority, in such
manner and at such time as may be prescribed.
Building
and Other Construction workers' Welfare Cess Rules, 1998
3. Levy of cess.- For the purpose of levy of cess
under sub-section (1) of section 3 of the Act, cost of construction shall
include all expenditure incurred by an employer in connection with the building
or other construction work but shall not include-
-cost of land;
-any compensation paid or payable to a worker or
his kin under the Workmen's Compensation Act. 1923.
1.
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Vide G.S.R. 49(E), dated 26th March, 1998,
published in the Gazette of India, Extra., Pt. II, Sec. 3 (i), dated 26th
March, 1998
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2.
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Came into force on 26th March, 1998
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4. Time and manner of collection.- (1) The
cess levied under sub-section (1) of section 3 of the Act shall be paid by an
employer, within thirty days of completion of the construction project or
within thirty days of the date on which assessment of cess payable is finalised,
whichever is earlier, to the cess collector.
(2) Notwithstanding the provisions of sub-rule (1),
where the duration of the project or construction work exceeds one year, cess
shall be paid within thirty days of completion of one year from the date of commencement
of work and every year thereafter at the notified rates on the cost of
construction incurred during the relevant period.
(3) Notwithstanding the provisions of sub-rule (1)
and sub-rule (2), where the levy of cess pertains to building and other construction
work of a Government or of a Public Sector Undertaking, such Government or the
Public Sector Undertaking shall deduct or cause to be deducted the cess payable
at the notified rates from the bills paid for such works.
(4) Notwithstanding the provisions of sub-rule (1)
and sub-rule (2), where the approval of a construction work by a local
authority is required, every application for such approval shall be accompanied
by a crossed demand draft in favour of the Board and payable at the station at
which the Board is located for an amount of cess payable at the notified rates
on the estimated cost of construction:
Provided that if the duration of the project
is likely to exceed one year, the demand draft may be for the amount of cess
payable on cost of construction estimated to be incurred during one year from
the date of commencement and further payments of cess due shall be made as per
the provisions of sub-rule (2).
6. Information to be furnished by the employer.-(1) Every
employer, within thirty days of commencement of his work of payment of cess, as
the case may be. Furnish to the Assessing Officer, information in Form I.
(2) Any change or modification in the information furnished
under sub-rule (1) shall be communicated to the Assessing Officer immediately
but not later than thirty days from the date of affecting the modification or
change.
7. Assessment.-(1) The Assessing Officer, on
receipt of information in Form I from an employer shall make a secrutiny of
such information furnished and, if he is satisfied about the correctness of
the particulars so furnished, he shall make an order of assessment within a
period not exceeding six months from the date of receipt of such information
in Form I, indicating the amount of cess payable by the employer and endorse
a copy thereof to the employer, to the Board and to the cess collector and
despatch such order within five days of the date on which such order is made.
(2) The order shall inter-alia specify the amount
of cess due, cess already paid by the employer or deducted at source and the
balance amount payable and the date, consistent with the provision of rule 4,
by which the cess shall be paid to the cess collector.
(3) If on scrutiny of information furnished, the
Assessing Officer is of the opinion that employer has under-calculated or
miscalculated the cost of construction or has calculated less amount of cess
payable, he shall issue notice to the employer for assessment of the cess.
(4) On receipt of such notice the employer shall
furnish to the Assessing Officer a reply together with copies of documentary
or other evidence in support of his claim, within fifteen days of the receipt
of the notice:
Provided that the Assessing Officer may, in
the course of assessment, afford an opportunity to the assessee to be heard
in person, if he so requests to substantiate his claim.
(5) If the employer fails to furnish the reply
within the period specified under sub-rule (4), or where an employer fails to
furnish information in Form I, the Assessing Officer shall proceed to make
the assessment on the basis of available records, and other information
incidental thereto.
(6) The Assessing Officer may, at anytime while
the work is in progress, authorise such officer to make such enquiry at the
work site or from documentary evidence or in any other manner as he may think
fit for the purpose of estimating the cost of construction as accurately as
possible.
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FORM I
(See rule 7)
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FORM II
[See rule 9 (1)]
Notice of Stoppage or Reduction of Work
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Information
required
1.
Name and location of the establishment where
Building :
Mention the place where
or other
construction work is to be carried on the job is carried out
2.
Postal
address of the establishment : Mention your office address
3.
Full
name and permanent address of the : mention the same as above
Establishment,
if any
4.
Full
and address of the Manager or person : write branch manger’s name
Responsible for
the supervision and control and branch address
Of the
establishment
5.
Nature
of building or other construction work : Construction of Building
Carried /is to
be carried on in the establishment
6.
Maximum
number of building workers : mention the max. no. of workers
Employed on any
day (the strength should not go more
Than the specified no. at any time)
7.
Estimated
date of commencement of building or the
:
Mention the likely date beginning
Other
construction work
8.
Estimated
date of completion of the building or other
: Mention the like date of completion
Construction
work
Fee
No. of workers proposed to be employed Fees (Rs.)
(a) Is up to 100 Rs. 2000/-
(b) Exceeds 100 but does not exceed 500 Rs. 5000/-
(c) Exceed 500 Rs. 10,000/-
(a) Is up to 100 Rs. 2000/-
(b) Exceeds 100 but does not exceed 500 Rs. 5000/-
(c) Exceed 500 Rs. 10,000/-
CA. Brijesh
Baranwal
Mumbai
Mumbai
Chartered
Accountant (in whole time practice)
Notes:
1. The above
write up is only for awareness purpose and should not be considered as expert
opinion.
2. Please feel
free to share with your friends and everyone without any copy right issues.
